Question

The sales tax rate in Connecticut is 6.35%. Megan wants to buy a jacket with a $45.00 price tag. She has a gift card to the store she wants to use. What amount needs to be on the gift card for Megan to be able to buy the jacket using only the gift card?

Answer 1

$47.86

Explanation:

A tax is a compulsory amount levied by the government or an agency of the government on goods and services

Taxes increases the price of goods and services. Thus, the amount paid would increase by the tax rate

Amount that needs to be on the gift card = amount of tax + price of the jacket

Price of the jacket = $45

Amount of tax = percentage tax rate x price of the jacket

0.0635 x $45 = $2.86

$45 + $2.86 = $47.86